In the calendar of events reflected the greatest part of the expected accidents for the current year. When scheduling takes into account the important economic news and events, the publication of which may affect the situation of the Forex market. Useful would be that using the calendar you can choose to sort your data by asking every continent, country, week, day, indicator, or to specify any desired period of time, choosing a start day and the end date of the event. This tool takes a leading position in the Arsenal of a trader who trades short term or day trading.
What information can we see in the events calendar:
- the fact that a particular news;
- the time of the release;the importance of this event;
- the previous reading;
- the forecast for the indicator.
Note that the actual value of the index is not fixed instantly. When there is a real solution number, we should expect it on the trading platform where you trade. In most trading platforms provided the ability to analyze news feeds.
Thanks to the calendar the trader gets an opportunity to understand in real time how the news fits the analytical predictions and expectations of any specific traders. This allows you to compare the actual value with the forecasted and previous figures.
What happens to the market before the news release
The market quickly responds to the logic of the probable influence of particular value. Therefore, if the index goes in accordance with the forecasts and expectations of experts, that no movement should be expected. As the market will react to this event, as expected and already priced in. In a situation when the actual value of an indicator does not meet expectations, the event will be considered as force majeure, after which it can begin intensive movement of the market.
That is, if during the trading day you plan to open a position and calendar displays important metrics, which can cause significant changes in market prices, then, of course, to open the position short with a stop loss, until this indicator is not recommended. As at the time of exit indicators the market may start a movement that defies the logic of any single analyst. In such a situation, you can knock out of the market by stop loss as a result of price noise.
In such situations, there is slippage and this is the situation when the position is closed not for the price that was previously planned. This phenomenon is characteristic of the Forex market. So trading within the day, before news release you need to be prepared.
But even if we trade not intra-day and medium-term or within the week, we need to understand that news that has come out in a given time may significantly change the situation on our trading account. Especially if they are not taken into account not taken any action. If we are holding the medium position and open a position in anticipation of news, you can not get the best entry price.